For those of you who seriously desire to learn how to trade the market there are lots of things outside the trading markets you should be actively following. But my bigger message is for those of you that aren’t in the futures markets, whether you actively trade the-markets or not, the commodities futures markets have a powerful impact on what happens in all other financial markets. That’s why you should soak up every piece of good trading knowledge like a sponge in an ongoing quest to see the big picture.

Can You Trade Successfully & Money Be Made Based on Price Moves Taking Place Just Prior to the Close?

Our commodity futures trading system research was done using data from the Chicago Mercantile Exchange (CME) Live Cattle market over a 4-1/2 month period. The trade results probably would be similar using data from most other futures markets but we have not verified that to be correct.

Using our commodity Price Quotes Machine we made a note of the price exactly 30-minutes prior to the market close each trading day. On the next day we noted the opening price, the days high/low range above or below the open, and closing price. Days were ignored if the 30-minute price and the subsequent closing prices were the same.

During the testing time-period a total of 61 trading days had chart up-trends during the last 30-minutes, and 78-days had market down-trend during the last 30-minutes.

Next Days Close Higher 62% of Time - Next Days Close Lower 56% of Time

The results were bullish for the next day if the price trend was up during the last 30-minutes, a total of 38 out of 61 times, or 62% of the time.

If the last 30-minute trend was down, the next day was likely to be bearish 44 out of 78 times, or 56% of the time.

This test has some good statistical validity. It seems to us a good commodities futures trading system could easily be developed based on this technical research.

Unfortunately, the percentage numbers may not be quite strong enough to make any potential commodity futures trading systems too reliable or extremely profitable. However, with more extensive market research involving a number of diversified trading markets, and using good money management skills combined with a tested and sound trading plan, any potential trading system based on this research could in fact be nicely profitable with reasonable low-risk.

The Official Closing Price is Not Necessarily Based on The Last Actual Trade

Thus, even though the last actual trade was at 679, the official closing price will be 678-1/2 that will be published in newspapers and market data vendors.

Another example is T-Bonds last trading at say 113-04, but about 15-minutes AFTER trading stops the Exchange reports they settled at 113-03.

Why does that occur? The exact reason is somewhat unclear. However, it seems to be related to the fact the Floor Traders and Floor Brokers do a commodity settlement between themselves after the actual close of public trading.

It Is Possible To Make Money Trading Based Only On Close vs Settlement Phenomenon

Is there any way money could be made based on this common settlement procedure? Quite possibly! We tested this concept in the Live Cattle futures market and discovered the following:

A total of 30 closes were observed where the final settlement price was higher than the last tick actual trade price. On 22 days the next day's closing price was bullish, or 73% of the time!

A total of 28 closes took place that resulted in the days final settlement being lower than the day's last tick. On 21 days the next day's close was lower, or 75% of the time!

Our technical market analysis is not complete. Additional markets and a greater time period need to be analyzed and additional futures markets need to be researched. However, there's a reasonable chance consistent money could be made trading by using these commodity observations and trading concepts.

You should seek and soak up every bit of good trading knowledge you possibly can like a sponge in a quest to clearly see the big trading picture and make money with lower-risk!

Futures Trading Products

William D. Gann Techniques Trading Course

William Delbert Gann - known world-wide as W.D. Gann. Gann is a true trading legend in the world of Stocks & Commodities trading. Born June 6, 1878 in Lufkin, Texas. W.D. Gann started commodity trading and stock market trading in 1902. In 1908 Gann moved to New York City opening his own brokerage firm, W.D.Gann & Co., located at 18th & Broadway. After many decades of incredible trading success, W.D. Gann moved to Miami, Florida where he continued his writings and studies up until his death on June 14, 1955.

W.D. Gann's trading profits are estimated as high as $50,000,000. Keep in mind he traded in the first half of the century. Mr. Gann, in the presence of representatives of a major financial publication, made 286 trades in 25-market days, on both the long and short sides of the market. Of these 286 trades, 264 were profitable!

This may very well be the "Best" & Lowest Priced
Gann Methodology Trading Course Available

This course was written by Dave Green of web.trading He has studied and used Gann's methods for the last 16-years. He considers himself an expert in Gann methodology.

Why spend $900 or more to learn Gann's trading and investment market techniques, when you can learn W. D. Gann's Techniques in this course, using unique methodology, for only a fraction of the price? The cost of the course is only $97 - FREE S&H and you also receive a link to print or read the The Magic Word written by W.D. Gann.

This trading manual contains Gann's secrets and techniques to potential successful trading of the commodities and stock market, using "hands-on plan English" learning skills. Includes many lessons, charts, plus annotated copies of Mr. Gann's old charts done in his own hand-writing.

This rare and highly useful commodities trading course offers every trader the information needed to incorporate this useful trading information into important commodities, futures & stock market trading and investment market decisions. Every trader needs to study this course and become familiar with "W. D. Gann's" trading techniques and trading methods before trading the markets.

For those traders who actively trade (or desire to learn how to trade successfully) the futures markets, there are a lot of other things outside the-markets you should be following. But, I guess my bigger message is for those of you that aren’t in the futures markets, whether you trade them or not, the commodity futures markets have a significant impact on what happens in the other financial markets, including forex, currencies, options and stocks. That’s why you should soak up every piece of good trading knowledge like a sponge in a quest to clearly see the bigger picture.